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a. The budgeted selling price per unit is $110. Budgeted unit sales for Ja are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and c. The ending finished goods inventory equals 30% of the following mor d. The ending raw materials inventory equals 10% of the following month The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of f. The direct labor wage rate is $23.00 per hour. Each unit of finished go g. Manufacturing overhead is entirely variable and is $8.00 per direct lab h. The variable selling and administrative expense per unit sold is $1.70.

a. The budgeted selling price per unit is $110. Budgeted unit sales for Ja are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and c. The ending finished goods inventory equals 30% of the following mor d. The ending raw materials inventory equals 10% of the following month The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of f. The direct labor wage rate is $23.00 per hour. Each unit of finished go g. Manufacturing overhead is entirely variable and is $8.00 per direct lab h. The variable selling and administrative expense per unit sold is $1.70.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 72P: Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for...
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Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,60O, 12,000, and 11,700 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours. g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000. The budgeted accounts receivable balance at the end of February is closest to:
Transcribed Image Text:Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,60O, 12,000, and 11,700 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours. g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000. The budgeted accounts receivable balance at the end of February is closest to:
The budgeted accounts receivable balance at the end of February is closest to: Multiple Choice $777,000 $816,200 $1,166,000 $349,800
Transcribed Image Text:The budgeted accounts receivable balance at the end of February is closest to: Multiple Choice $777,000 $816,200 $1,166,000 $349,800
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